Consumers will catch a break

European Union sovereign debt a factor

Media release

Conception Bay South, NL, June 21, 2011- Consumers of petroleum products will catch a break as European Union member countries, particularly Greece, deal with debt problems. That news comes from the group researcher for the Consumer Group for Fair Gas Prices, George Murphy.

Reality kicks in for investors

"It's back to reality for investors and speculators as ongoing concerns of any economic recovery married with European Union sovereign debt all reign over the markets. For some investors, the US dollar was the only safe haven when they pulled their finances out of oil in fear of a world slowdown caused by Greek, Italian and Portuguese debt-loads. Of real concern is austerity programs that could wreak havoc with the Greece debt and economic recovery efforts", Murphy said.

"Numbers show the start of what I feel is a 'more to come' scenario. If monetary problems persist and Greece doesn't meet her debt payment schedule, then we may see further drops in prices as investors pull out of oil. Right now, investors are caught in a tenuous catch-22 situation where they have no choice but pull money out of oil with a possible economic collapse in Europe. But, if they pour their money into the US dollar as a safe haven, they could cause a slowdown in US exports with an increase in the US dollar value, making their manufacturing sector face a slowdown."

"Markets are very 'bear' right now"...

Numbers

"My numbers show a drop to all fuels is on the way for Thursday morning. I have heating and stove oils down by 3.56 cents a litre while, diesel shows a downwards movement by 3.7 cents a litre, taking a little bit of relief in the distillate group of fuels."

"Gasoline shows a drop of 2.8 cents, but that number, as well as the distillates, do not account for any market volatility that is out there, and it has been volatile!"

"I'm hoping the news in the numbers will carry through for next week. Numbers are already showing a downwards trend, but its continuation will depend mainly on what happens with the European Union's handling of the money crisis amongst member countries like Greece. If she defaults on the first debt payments, it could be 'force majeure' in the marketplace, and we could see investors run. Numbers are already showing signs of another decrease on the way for next week if Greece continues to play in the markets again. Numbers are already showing an even two cents down for all fuels for next week, but it's still a little early to call it. We'll wait and see what happens."

-30-

For more information, contact:

George Murphy

Group researcher/Member

Consumer Group for Fair Gas Prices